4 Ways Credit Unions Can Grow Take-Up Payments
A critical mass of U.S. and Canadian consumers are completely tied to their smartphones. More than half of adults own them and recent research indicates that the average smartphone user checks his or her phone more than 150 times a day. These powerful little computers in our pockets are quickly changing how we learn about products and services, bank, and pay for things.
Novantas fielded two mobile payment surveys on FindABetterBank.com since April 2013 and we’ve seen the market grow substantially between surveys. The Filene Research Institute and Novantas also explored the latest mobile payment trends in a report, Bank Shopper Snapshot Survey: Mobile Payments Tracker II.
Why does take-up of mobile payments matter to credit unions? Adoption of mobile payments will erode interchange revenue and disaggregate a major component of how consumers use their primary banking institutions because they’ll use other providers to make payments.
These four ideas will put your credit union in the middle of your members’ mobile payment transactions.
Offer expedited bill payments. In the U.S., more people pay bills on their mobile phones than smoke cigarettes. However, they’re more likely to use services provided by billers than by their primary banking institutions. Expedited mobile bill pay is the best way to ensure members pay these bills through the credit union.
Partner with mobile POS providers. Build bridges with mobile POS providers like PayPal and retailers like Starbucks that will encourage members to connect their credit union accounts to these mobile payment apps. For example, offer additional rewards for using their credit union accounts when making mobile POS payments.
Tightly integrate P2P into mobile apps. Many credit unions offer Popmoney to their members, but you would hardly know it. For many consumers, particularly young adults, P2P is more relevant on their mobile phones than on their PCs. This should be a major feature on your mobile app and promoted as such. The mobile P2P market hasn't exploded yet. Get ahead of the curve.
Encourage employees to mobilize and evangelize. Based on a social media study by Filene, employees can be excellent ambassadors for their credit unions.
CLICK HERE to access the Filene report.Rob Rubin is an adviser for the Filene Research Institute and managing director at Novantas.Contact212-401-5277 or firstname.lastname@example.org